ALL ABOUT ACCOUNTING :- 8th BLOG
A. *****ACCOUNTING***** Hi freinds 🙏., Today's discuss 3rd accounting principles... So let's discuss... 3. CONSERVATISM :- Accounting conservatism is a principle that requires company accounts to be prepared with caution and high degrees of verification. All probable losses are recorded when they are discovered, while gains can only be registered when they are fully realized. Conservatism principle is the accounting principle that concern about the reliability of Financial Statements of an entity. ... For example, without using this concept, the accountant could manipulate the accounting records where those transactions are not reliable. Then, the financial statements result unreliable. ★ Importance of conservatism in accounting :- In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. ... Conservatism plays an important role in a number of